Polyester intermediate prices are currently stabilized in the Far East, after previously rebounding. Polyester fiber and filament prices could also stop rising, after suddenly increasing in the past week.
Raw material costs of polyester fiber producers have stopped rising in the Far East.
From a week earlier, spot prices have stabilized with PTA being up 5$ or 0.6% and MEG gaining 7$ or 1.1%.
Spot paraxylene prices have dropped 16$ or 1.4%.
Operating rates in China have reached very high levels at PTA plants over a rebound in demand from polyester fiber producers.
At 83%, operating rates are even higher than in the same period last year.
A series of maintenance operations could however reduce the production levels in the second part of the current month, therefore supporting PTA prices.
Operating rates have also been raised at MEG plants, climbing to 79% and resulting a in price stabilization.
However, a series of overhaul operations in the coming weeks could reduce the production level and offer a strong support to MEG sellers.
Demand from polyester fiber producers has surged, over a sharp increase in polyester sales in the past ten days.
Operating rates have jumped to 88% at polyester plants, as a result, fueling demand for PTA and MEG and triggering a rise of PTA futures.
The textile industry is also now running at full steam in China, in line with seasonal trends in this period of the year.
Operating rates of fabric producers have jumped to 70% which is a relatively high level by historical standard.
Source: Emergingtextiles
